TOKYO (Aug 28): Benchmark Tokyo rubber futures ended up 3.1% on Friday on the back of a surge in global oil prices and an extended decline in the Japanese yen against the dollar.
Tokyo Commodity Exchange (TOCOM) futures, which set the tone for tyre rubber prices in Southeast Asia, showed wide fluctuations this week and have recovered 8% from a six-year-low of 165.1 yen hit on Tuesday.
The Tokyo Commodity Exchange rubber contract for February delivery <0#2JRU:> finished 5.3 yen higher at 178.3 yen per kg, after rising as much as 5% to 181.6 yen shortly after Friday’s open. However, the benchmark contract posted a second weekly decline of 2.9%.
“Rubber has been swayed by wide fluctuations in forex, equities and commodities, but the fundamentals are little changed, so we could see some more upside next week,” said a source with a Tokyo-based broker.
The dollar bounced back above 121.03 yen from around 120.20 yen on Thursday afternoon, on upbeat US data.
India was concerned about the problems faced by the local rubber and steel industries due to “dumping” by countries that it has free trade agreements (FTAs) with, the steel and mines minister was quoted as saying by the Confederation of Indian Industry.
The most-active rubber contract on the Shanghai futures exchange for January delivery rose 240 yuan to finish at 11,565 yuan per tonne.
The front-month rubber contract on Singapore’s SICOM exchange for September delivery last traded at 129.4 US cents per kg, up 0.3 US cent.